Nigerian banks elevated lending to traders within the first half of 2026, whereas producers noticed a pointy drop in excellent financial institution credit.
This is in accordance to Nairametrics Research’s evaluation of sectoral credit knowledge printed by the Central Bank of Nigeria (CBN).
Average credit to commerce and normal commerce rose 62% in contrast with the identical interval final 12 months.
Manufacturing credit, in the meantime, fell by about 27%, exhibiting that the rise in lending didn’t attain all elements of the financial system equally.
Traders entice more financial institution credit
Trade and normal commerce recorded the largest improve within the worth of excellent credit among the many sectors that attracted more financial institution financing. Average credit to the sector reached N5.94 trillion in H1 2026, up 62.04% from N3.66 trillion in H1 2025, the strongest year-on-year progress in absolute naira phrases among the many rising sectors.
The figures measure excellent mortgage balances being the quantity debtors owed banks on common in the course of the interval, slightly than the worth of recent loans banks accepted.
Other sectors additionally recorded will increase:
- Financial companies remained the second-largest recipient of financial institution credit after the commercial oil and fuel sector.
- Agriculture attracted more credit, alongside development, energy and power.
- Transportation and storage additionally recorded progress, exhibiting that the positive aspects prolonged past buying and selling and monetary actions.
Overall, 12 of the 17 sectors tracked recorded will increase, whereas 5 noticed declines.
However, common excellent credit throughout the financial system was solely barely larger than a 12 months earlier. This means the stronger progress recorded in commerce and several other different sectors got here alongside substantial reductions elsewhere, slightly than a broad surge in lending to companies.
Manufacturers face a unique image
Manufacturing moved in the other way, with common excellent credit falling 26.94% to N5.71 trillion in H1 2026 from N7.81 trillion in H1 2025. The decline left the sector behind commerce and normal commerce within the distribution of financial institution credit. As lately as H1 2022, manufacturing accounted for 16.43% of whole excellent financial institution credit; by H1 2026 that share had fallen to 9.58%.
For readers, the distinction is easy: traders accounted for a bigger portion of banks’ excellent loans, whereas producers accounted for much less. The figures alone don’t clarify whether or not that mirrored banks’ lending selections, weaker borrowing demand, mortgage repayments or a mixture of things.
The decline additionally prolonged to different sectors:
- Industrial oil and fuel remained the most important recipient of financial institution credit, however its excellent steadiness fell.
- General companies recorded a considerable contraction.
- Information and communication know-how, as effectively as actual property, additionally acquired much less credit than a 12 months earlier.
Manufacturing’s decline follows earlier warnings about entry to financing. Nairametrics beforehand reported that the Manufacturers Association of Nigeria raised concerns about a N1.92 trillion fall in manufacturing credit during 2025.
The newest figures present that the stress on manufacturing credit continued into the primary half of 2026.
Will decrease charges change lending?
The subsequent query is whether or not decrease rates of interest will assist companies entry more inexpensive financial institution loans. The CBN reduced its benchmark Monetary Policy Rate to 23% in September 2026, after the interval lined by these figures.
That timing issues as a result of the first-half knowledge can not present whether or not the September choice has modified lending situations. A discount within the benchmark charge additionally doesn’t instantly set up that companies can borrow more cheaply.
The developments to watch embody:
- Whether banks scale back the rates of interest they cost companies on loans.
- Whether lending to the manufacturing sector begins to get better in subsequent CBN reviews.
- Whether credit progress extends to more sectors, significantly those who recorded declines within the first half of the 12 months.
MAN Director-General Segun Ajayi-Kadir beforehand informed Nairametrics that prime lending charges round 30% might proceed to restrict producers’ entry to inexpensive financing, regardless of the benchmark charge discount.
